LIC may have a muted debut. What’s the reason? | Value Research LIC IPO, the biggest-ever public offer that India witnessed may have received a soft debut. Let’s find out the cause.
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LIC may have a muted debut. What's the reason?

LIC IPO, the biggest-ever public offer that India witnessed may have received a soft debut. Let's find out the cause.

LIC, India's largest life insurance company came out with the largest-ever IPO which may have a tepid debut due to low grey market premium. On Saturday, i.e., May 14, 2022, in the grey market, the shares of LIC were trading at around Rs 936, which is Rs 13 less than the upper price band of the issue price. This has been attributed to gloomy markets and unstable macroeconomic conditions. Check out our analysis of LIC IPO.

While this may be bad news for the high net worth investors as they may face listing losses, the retailers, employees and policyholders can still have listing gains. Why? Because of the discount! As we saw previously, LIC offered its shares at a discounted price to retailers, employees and policyholders. If we assume that LIC lists at Rs 936 per share, this will be the listing gain that these categories can book:

LIC may have a muted debut. What's the reason?

How many times the IPO has been subscribed?

While the IPO received a great reception from policyholders and employees, it wasn't much of a spectacle in other sections. Overall, the IPO was subscribed a total of 2.95 times.

LIC may have a muted debut. What's the reason?

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